The three-month price of lead fell by 2.4% over the afternoon, back below $2,100 per tonne, edging significantly lower amid a lack of buying appetite in the wake of poor Chinese economic data.
“The LME lead cash/three-month spread remains in a healthy contango at $14.50 per tonne. The relatively easy nearby spread indicates that there is no immediate sign of market tightness, and metals are steadily leaving LME warehouses,” Metal Bulletin analyst Andy Farida said in his Lead Today report.
“So far in August, total LME stocks have dipped to 122,175 tonnes after accounting for the 500 tonnes of fresh inflow this morning. But with 60,725 tonnes of metal assigned for removal, there is not a lot of idle metal around, if the drawdown continues,” he added.
Elsewhere, copper prices were also subject to a significant downturn over the afternoon, falling by 1.7% over the period.
News of continued negotiations at...